Hedge fund guru John Paulson thinks Treasury yields are going to rise, and he and other hedge fund managers are positioning their portfolios to benefit.

Paulson recently told the Financial Times that he has been buying options that would make money if Treasury rates rise. The Times reports that TPG-Axon’s Dinakar Singh has been making similar options trades, and well-known hedge fund manager Julian Robertson “has pursued a related strategy, hoping to benefit from a bigger difference between short-term and long-term interest rates, known as a steeper yield curve.”

Paulson has previously said that he thinks major inflation, and thus higher yields, is coming for the U.S.. “It will be difficult for the government to withdraw the economic stimulus,” he said in a speech, according to the Times. “An increase in the monetary base leads to an increase in the money supply, which leads to inflation.”